Solar Powering Michigan: Michigan Solar Market Potential

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Michigan Solar Market Potential Abhilash “Abhi” Kantamneni| Michigan Technological University

description

Many local markets in Michigan present significant opportunities for PV project development due to high local utility rates. This presentation will identify jurisdictions that have a strong financial value proposition for PV development. Presentation for Solar Powering Michigan Conference, Traverse City, Michigan, September 12. Sponsored by Midwest Renewable Energy Association, US Department of Energy, Suniva, 5 Lakes Energy, Harvest Energy Solutions, Michigan Public Service Commission, Michigan Environmental Council, Michigan Energy Office, CBSi Solar and E3 Inc.

Transcript of Solar Powering Michigan: Michigan Solar Market Potential

Page 1: Solar Powering Michigan: Michigan Solar Market Potential

Michigan Solar Market Potential

Abhilash “Abhi” Kantamneni| Michigan Technological University

Page 2: Solar Powering Michigan: Michigan Solar Market Potential

Houghton Winters

Source: Mining Journal

Source: Mining Gazette

Source: Michigan Tech Alumni

Source: Mining Journal

Source: boniashburn.com

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Average Residential Electricity Retail Rates

by State (2013)State Average Price

[$/kWh]Hawaii $0.37

Houghton $0.21-$0.24New York $0.19

Alaska $0.19Connecticut $0.18

Vermont $0.18New Hampshire $0.17

California $0.16New England $0.16

Middle Atlantic $0.16Massachusetts $0.16

New Jersey $0.16Michigan $0.15

Source: www.eia.gov

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Michigan Tech KRC Photovoltaic Research Center

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Advantages of High Module Tilt: Albedo

Source: nsidc.org

1 16 31 46 61 76 91 1061211361511661811962112262412562712863013163313463610

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

Solar Irradiation and Albedo

S_Horizontal (W/m^2) Albedo (W/m^2)

Day of the Year

W/m

^2

Source: MTU KRC

Author
As you can see from actual data collected at the KRC, the albedo is very high during the winter months. Therefore, the higher angle also helps capture a larger percentage of albedo from the snow.
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Advantages of High Module Tilt: Snow Shedding

4 188 372 556 740 924 11081292147616601844202822122396258027642948313233163500368438680

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140

PV System Output Under Snowy Conditions

45* 30* 15*

Hours since 12:00 Am Nov 1 2013

Ener

gy P

rodu

ced

(Wh)

Shedding from 45*

Author
As you can see, the panels at a lower angle do not produce any energy due to a combination of being covered by snow and low S_Horizontal component.The highlighted region in red shows that snow has fallen off the 45* panel, but not the other two
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Source: www.nrel.gov

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Simple ROI Calculation

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Barriers to Solar

Solar Calculator

DIY Bulk Purchasing

MichiganSaves.org + Local Credit Union

‘Solarize Houghton’

Does it make $en$e?

High Installation Costs:

Financing

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Solar Market Penetration in Houghton

2013 MPSC Net Metering report:- ~30kW Summer 2014: 60kW added (all residential)

Fall 2014: +200kW expected. (County Road Commission, City Center, Public Library, Golf Course, Ski Hill, Coffee Shop, State Park….) and Upper Peninsula’s first Community Solar with Ontonagon REA.

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Benefits of Renewables Michigan Public Service Commission

Report on Renewable Energy Standards (RES) says phased integration of renewables cheaper than new coal generation facilities.

Michigan Department of Energy, Labor & Economic Growth Report on Green Jobs says renewable energy sector job creation = 3% of all private sector employment in state

International Energy Agency Report on Energy Security says renewable energy systems reduce supply disruptions and reliance on imported fuel.

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Actual Quote: “The only green that matters, is the color of my $$”

(Obviously, not a philosopher)

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Where is the Solar Market Potential in Michigan?

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Spoiler: Not in RES Compliance.

MI PA 295 Renewable Energy Standard RES requires all Michigan electric providers to meet 10% of their retail sales using renewable energy*

Currently all MI utilities are on track to meet RES Compliance*

*Source: MPSC Report on RES Compliance

*Figure: MIRECS 2009-2013 Credits by Energy Source

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Answer: Grid Tied Net Metered Systems

Large majority of installed net metered customer generation is Solar. Source: MPSC Annual Net Metering Report 2014

Figure: MPSC 2013 Net Metering Program - Installed CapacityFigure: MPSC 2013 Net Metering Program - Installations

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Understanding Net Metering

Source: MPSC Annual Net Metering Report 2014

Category I: Systems < 20KW. Full Credit on excess generation. Limit: 0.5% of Utility’s peak load.

Category II: Systems > 20KW < 150kW. Partial Credit on excess generation.

Category III: Systems > 150kW.Methane Digester projects up to 550 kW

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PV Market Opportunity by Utility Service Area

8 Investor-Owned Utility Companies

9 Rural Electric Cooperatives

41 Municipal Electric Utilities

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PV Market Opportunity by Available Net Metering Capacity

Source: MPSC Annual Net Metering Report 2014

47079 43775

MI category i net metering capacity remaining [kW]

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PV Market Opportunity by Utility Electric Rates

OCREA

UPPCO

WEPCO

DTE ELECTRIC

CONSUMERS

CHERRYLAND

THUMBXCEL

AEP

$0.24

$0.21$0.21

$0.16$0.16

$0.15$0.15$0.15$0.14

$0.14$0.14$0.13

$0.11$0.11$0.11

$0.10$0.10

MI Average Residential Electric Rates 2013[$/kWh]

MI Average: $0.14/kWhSource: MPSC Utility Company Annual Reports 2013

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PV Market Opportunity by Utility Electric Rate Increases

OCREA

UPPCO

WEPCO

DTE ELECTRIC

CONSUMERS

CHERRYLAND

THUMBXCEL

AEP

116%

94%107%

48%

86%

49%73%72%79%

40%42%

76%

29%39%43%61%73%

MI Average Residential Electric Rate Increase 2001-2013

MI Average: 74%

Source: MPSC Utility Rates Summary

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PV Market Opportunity by Average Annual Consumption

MI Average: 8MWh/Year

OCREA

UPPCO

WEPCO

DTE ELECTRIC

CONSUMERS

CHERRYLAND

THUMBXCEL

AEP

4.5 5.1 5.85.46.8 7

.2 7.9

6.48.110.0

8.4

11.611.8

8.0 7.38.3

11.1

MI Average Residential Electric Consumption 2013 [MWH/year]

Source: MPSC Utility Company Annual Reports 2013

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UtilityRank by Available Capacity*

Rank by rates

Rank by rate Increase

Rank by Consumption Aggregate Rank

OCREA 12 1 1 1 1UPPCO 7 3 2 4 2

ALGER DELTA 12 2 3 2 3WEPCO 4 5 4 6 3

DTE ELECTRIC 1 7 8 9 5CONSUMERS 2 9 5 11 6

ALPENA POWER 8 8 9 5 7PRESQUE ISLE 12 4 12 3 8GREAT LAKES 12 6 11 7 9

MIDWEST ENERGY 5 12 6 16 10AEP 3 17 7 15 11

CLOVERLAND 6 14 16 10 12XCEL 10 15 13 8 12WPS 9 16 10 12 14

CHERRYLAND 12 11 14 13 15TRI-COUNTY 12 10 15 14 16

THUMB 11 13 17 17 17

PV Residential Solar Market Potential

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UtilityRank by Available Capacity*

Rank by rates

Rank by rate

Increase

Rank by Average

ConsumptionAggregate Rank

ALGER DELTA 12 2 1 3 1OCREA 12 1 2 4 2

MIDWEST ENERGY 5 8 3 7 3WEPCO 5 4 4 14 4

ALPENA POWER 8 6 5 8 4UPPCO 7 3 8 12 6

TRI-COUNTY 12 5 11 2 6GREAT LAKES 12 7 12 1 8CLOVERLAND 6 12 9 6 9CONSUMERS 2 9 7 16 10

WPS 9 14 6 9 11PRESQUE ISLE 12 10 14 5 12DTE Electric 1 13 13 17 13

AEP 3 17 10 15 14CHERRYLAND 12 11 16 10 15

THUMB 11 15 17 11 16XCEL 10 16 15 13 16

PV Commercial Solar Market Potential

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Summary: “Go West, Young Man”

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Georgetown University Energy Prize Quarterfinalist: Houghton County

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Contact Information

Abhilash Kantamneni

221 Rekhi HallMichigan Tech1400 Townsend DriveHoughton MI

[email protected]

www.SolarizeHoughton.org